Fraud & Chargebacks

Understand transaction fraud, authentication, disputes and practical controls.

Fraud is broader than stolen cards

Fraud can involve stolen credentials, account takeover, synthetic identities, friendly-fraud claims, refund abuse, bot activity and other patterns. Controls should be proportionate to the business and customer journey.

Authentication

Tools such as 3-D Secure can add authentication to card-not-present transactions. Rules and exemptions vary by market and transaction context.

Chargebacks

A chargeback is a card dispute process that can reverse a transaction through the card network and issuer process. Common dispute categories include fraud, non-receipt, duplicate processing and service issues.

Build a layered approach

• Use device, velocity and behavioural signals where appropriate.
• Apply authentication intelligently.
• Maintain clear order, delivery and customer-service records.
• Monitor dispute ratios and reason codes.
• Make refund and cancellation policies easy to understand.